One Big Beautiful Bill could boost virtual care investment
The digital health sector could receive a boon from the One Big Beautiful Bill Act (OBBBA) with a permanent extension of the telehealth safe harbor for high-deductible health plans (HDHP). This signals a potential monetary reprieve for consumers, shifting first dollar coverage costs to insurers for those covered under HDHPs. For consumers, this could mean more affordable and convenient solutions to meet their needs through virtual care services such as primary care consultations, mental health therapy and chronic illness management. Currently, 41.7% of all individuals under the age of 65 are enrolled in an HDHP, among those with private health insurance.
Previously, temporary extensions created market uncertainty. The permanent extension could lead to increased utilization and more predictable revenue streams for virtual care platforms and may lead to an attractive mergers and acquisitions environment for those looking to deploy capital in the digital health sector, which is seeking a rebound since 2024’s digital health funding ended at $10.2 billion, down from $29.2 billion in 2021, according to a recent study by Rock Health.
The takeaway
This could mean a stable path forward for virtual care platforms due to the permanent extension of safe harbor rules for HDHPs. As a result, utilization and revitalization of digital health investments could get a boost as organizations strengthen and diversify their care solutions to meet consumers’ needs in more affordable ways.
Learn more about what’s happening in health care in our industry outlook.
